Tuesday, April 23, 2024

ExxonMobil Terminated the LNG Project Partnership with Pakistan

ExxonMobil has recently terminated the partnership with the Pakistani consortium Energas as per the report of NS Energy. The partnership of ExxonMobil was formed to establish the liquefied natural gas import terminal (LNG) project.

An agreement was signed by ExxonMobil with Energas in the year 2018, for the support to become third Pakistan’s LNG terminal. The decision to quit this project of LNG is seen as a part of the plan by ExxonMobil to reduce the capital and their operating expenses.

However the national daily of Pakistan had reported earlier that ExxonMobil was evaluating the appropriate significant steps and measure to reduce the capital and the operating expenses, but in the near terms, the commodity prices and market conditions lower down.

It was stated by the company’s spokesperson that; this step is the part of the ongoing review to find further efficiencies and strengthen the company for the future. He also quoted that the company will not affect its downstream and the chemical activities in the country (Pakistan), whereas they will assess the future investment opportunities in the country.

ExxonMobil moves to quit this project in Pakistan after the third consecutive quarterly loss in the year 2020. The NS Energy is of the opinion that this may lead the company to take up even the deeper cost cuts and potential of $30 billion write-downs to its North American natural gas assets.

The ExxonMobil had also signed a cooperation agreement earlier with Universal Gas Distribution that was related to the compressed natural gas (CNG) sector, and the LNG supply to Pakistan.

Huge layoffs are also expected, as the company is set to reduce its global workforce by the rate of 15% in the next two years, that is approximately around 14,000 jobs.

In Texas, in the company’s headquarters, 1,900 job cuts have already been reported, and across Europe, the US energy company may lay off up to 1,600 more employees by the end of the year 2021.

Bilal Jamil
Bilal Jamilhttps://startuppakistan.com.pk
Founder & CEO at Startup Pakistan

Related Articles

Latest Articles